Examlex
Ivan Pavlov demonstrated that dogs could learn to associate a neutral stimulus, such as the sound of a bell, with an automatic response, such as reflexively salivating to food.
Systematic Risk
The risk inherent to the entire market or market segment, also known as "market risk," which cannot be reduced through diversification.
Unsystematic Risk
The risk of price change in a company's stock due to company-specific events, distinguishable from market-wide risk.
Business-specific Risks
Refers to the uncertainties or potential financial losses that are directly related to the operations and environment of a particular company or industry.
Diversified Away
The reduction of risk in an investment portfolio by allocating investments among various financial instruments, industries, and other categories to minimize the impact of any single asset or risk.
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